RIP, Nissan Altima Hybrid -- A Can't-Fail Car Dead From Neglect and Poor Planning

The Nissan Altima Hybrid will be dead at the end of the year, without most people even knowing it was ever alive. Since 2007 only 35,000 were sold, and it's going to its grave haunted by more than two million Toyota Priuses on the road.

Couldn't fail, but did

On paper, the Altima Hybrid was a can't-fail car. Nissan's quality reputation is high, and the excellent Altima compact joins the Maxima as a big reason for that. Plus, Nissan built its new hybrid around the proven Toyota Synergy Drive system in the Prius.

If just 10 percent of the 25,525 Americans who bought an Altima in May had opted for the hybrid model, the company would have had a hit on its hands. But that never happened. Aside from a big spike from the Cash for Clunkers trade-in rebates, sales stayed in the cellar. And it's Nissan's own fault that it failed with what is actually a pretty good car.

Nissan will be back soon with hybrids using the homegrown technology it's now showing off in the 2012 Infiniti M Hybrid. By 2013, there are likely to be new gas-electric models in Nissan's lineup. And the company is likely to learn from its many mistakes with the Altima, which include:

1. Questionable motives: Nissan built the Altima Hybrid not because it really believed in the car -- as Toyota did the Prius -- but because it needed stellar fuel-economy numbers to meet California's tough environmental mandates. It was always an afterthought in Nissan's planning process.
2. Stealth marketing: Nissan chose to sell the Altima Hybrid only in California and the seven states that follow its emission rules. So the car was dumped onto a limited market, and failed to get any kind of national momentum or name recognition. Nissan never touted hybrid technology, and its silence about this car was deafening, especially when contrasted with the all-hands-on-deck marketing treatment it accorded the Leaf battery car.
3. Neglect: The Prius was updated with many running improvements, and has gone through three generations since it was introduced in 2000. The Altima largely stagnated during its four-year run when it should have been regularly freshened.
4. Terrible pricing and mileage: At $26,800 the Altima Hybrid wasn't much of a value proposition. The Prius starts at $22,120! If it was cheaper than the Prius, more units would have moved. And the Altima's 33/33 mpg fuel economy was totally eclipsed by the Prius' 51/48, and even the Ford Fusion's 41/36. And there was nothing about it -- great cargo capacity, maybe, or blistering road performance -- that would lead you to buy it anyway. In a lukewarm assessment, U.S. News concluded:

In a growing class, the 2011 Nissan Altima Hybrid is easily overlooked because of its low fuel economy ratings, limited availability and expensive optional packages.

5. No green messaging: The Altima suffered the fate of many other hybrids that tried to catch the Prius' buzz. Because it was based on an existing model without quirky styling to set it apart, the Altima didn't proclaim the owner's environmental credentials. You had to read the badge fine print to even know it was a hybrid.

Related:

• Even High Gas Prices Can't Move Ungainly, Expensive Hybrids